FTSE Jan to Feb Rollover 15th Jan 2018
The FTSE held onto its R2 bandwidth, even managing to eke out another record high, but it wasn’t all plain sailing.
It struggled for the first hour and then when it finally did achieve some traction it found it very heavy going, which is a concern.
It had a scare early afternoon and fell to 7752.53 which tested and found support at R2 but again, hardly convincing.
7600-7700 still looks good to be the next NZ as the ratios are weaker above the zone, but worth bearing in mind as 7750 has only just held onto R2 status so a small tweak will see it drop to R1, which would then make the R1 ratio bandwidth 7700 to 7800, with 7800 becoming R2 and being backed up with R2 at 7850.
Range: 7750 to 7850
For our first look at Feb the most notable aspect is the NZ is already at 7550-7650, which if Jan’s does move this would actually be below it.
Therefore, the overlapping area, where they both have commonality is 7600-7650, which might be worth bearing in mind for Wednesday.
The other standout aspect is here 7800 is already R3, where in Jan we are anticipating it to become R2, but both have 7850 as a serious level.
If it were the DJX this would all be a moot point, but in London, although it has its moments, these are levels that hurt.
Range: 7750 to 7800
HRA DAX Jan to Feb Rollover 15th Jan 2018
The DAX carrying on from its perfect expiry managed a NZ bandwidth test of Friday, adding a bit more icing to the cake.
The low was 13168 (bottom boundary 13150) and the high was 13265 (13250), so slightly skewed but a few points on a thirteen-thousand-point index is to be expected.
Rather annoyingly this tends to precede a breakout which could scupper the perfect ending, but with the rollover looming this may just trump the test.
But whatever happens in the next couple of days calling the low and high 700-points apart on such a large index is more than enough for us.
Range: 13150 to 13250 or 13250 to 13450
Type: On balance bearish
This has got to be one of the most unusual starts we have ever seen in the DAX, and for once we certainly don’t need to mention the slow-build.
Below the zone there are but 3 levels to remember, or make note of, and above this is also the case but this is due to the fact there is virtually nothing there.
This scenario should not need too much explaining but perhaps a cautionary note as it is still very early days.
Range: 13150 to 13600